Benford_s Law Paragraph.

Benford_s Law Paragraph. - pages After analyzing several...

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Ryan Thiel 11/22/2011 ACC 413 Benford’s Law Paragraph Benford's law, also called the first-digit law is a critical concept when dealing with statistical sampling. This law states, that in lists of numbers from many (but not all) real-life sources of data, the leading digit is distributed in a specific, non-uniform way. According to this law, the first digit is 1 about 30% of the time, and larger digits occur as the leading digit with lower and lower frequency, to the point where 9 as a first digit occurs less than 5% of the time. The below equation describes the law. This idea was first presented by American astronomer Simon Newcomb in 1881, in a time when calculators did not exist. Calculations were made using pencil and paper. Books with page after page of logarithm tables were used for complex calculations. Newcomb noticed that the pages of the logarithm books containing numbers starting with 1 were much more worn than the other
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Unformatted text preview: pages. After analyzing several sets of naturally occurring data Newcomb went on to derive what later became Benford's law. Newcomb was rewarded for his effort by being ignored. In 1938 a physicist Dr. Frank Benford made the same discovery. However, he studied a much larger amount of data than Newcomb. He analyzed about 20,229 different sets of data, including the areas of rivers, baseball statistics, numbers in magazine articles and the street addresses of the first 342 people listed in the book. Unlike Newcomb, Benford was acknowledged for his contributions and the relationship he derived was eventually named Benford's law in 1938. After graduating from the University of Michigan in 1910, Benford worked for General Electric, for 38 years retiring in July 1948. He died December 4, 1948....
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